I used to think that about risk management, but now I'm thinking that's part bullshit. the debate should be about what part, does risk management play in a traders edge. No one in there right mind would pick a random point and just employ risk management, except maybe someone that trades customer funds. It would work but why bother to take on unnecessary heat? Why not look for value? A true edge requires specific rules for specific conditions.
Exactly...it is quite dipstickish to think that risk management is the only edge. It isn't even AN EDGE. It a part of the process but it will not and cannot be the sole reason for being a successful trader. If all one would have to do is to become an expert at prudent risk management then it would be quite easy for most traders to become wealthy.
I can't see how anyone in their right mind can confidently execute a trading plan without some kind of a forecasting model. Why drive without headlights unless you have to?
I think this is all semantics. Entries, exits, and sizing are calculated based on risk, no? It's all the same.
Correct. Most traders will not become experts at PRM. It's just not sexy. It is however the mother's milk of trading. --and most will never drink.